In a significant market development, IIFL Finance experienced a 20% decline in its share price, hitting the lower circuit on the BSE, as the Reserve Bank of India (RBI) imposed restrictions on the company. Shares of IIFL Finance were locked at Rs 478.5 apiece after the RBI prohibited the company from sanctioning or disbursing gold loans. Additionally, the central bank barred IIFL Finance from assigning, securitising, or selling any of its gold loans.
This sharp fall marked the third consecutive session of declines for IIFL Finance’s stock. As of 9:54 a.m., the market capitalization of the company stood at Rs 18,253.97 crore.
The RBI’s decision was based on its inspection, which revealed significant supervisory concerns in IIFL Finance’s gold loan portfolio. The concerns included serious deviations in assaying and certifying the purity and net weight of gold during loan sanction and auction upon default.
Investors and market participants closely watch the aftermath of the RBI’s regulatory actions, as IIFL Finance navigates the challenges posed by the restrictions on its gold loan operations. The impact on the company’s financial health and market reputation will be closely monitored in the coming days.
